Food entrepreneurs set off on their journey with high hopes and delicious recipes, but the harsh reality is that many food brands ultimately fail. So, what goes wrong, and how can you avoid these pitfalls? Let’s explore the common reasons behind food brand failures and how you can hopefully steer clear of them.
Ignoring Market Trends
One of the most common culprits for food brand failures is what people want. The food industry is a dynamic and ever-changing environment driven by shifts in consumer preferences and demands. A great example of this is the rise of plant-based and vegan products. Brands like Beyond Meat capitalised on the growing trend toward plant-based diets, offering consumers a sustainable and healthier alternative to their familiar meat products. Failing to adapt to such trends can lead to losing relevance and market share.
How to avoid it: Stay vigilant about market trends by conducting thorough market research and monitoring consumer behaviour. To stay ahead of the competition, attend industry trade shows and connect with industry experts to keep your finger on the pulse of the industry. Be ready to adapt and innovate, even if it means reformulating your product to cater to changing tastes. It’s much better to evolve than fade away!
Poor product quality
Nothing can sink a food brand faster than a subpar product. No amount of endorsements, marketing or branding can save a product that lacks the expected quality. An example is the infamous “New Coke” of 1985. Coca-Cola introduced a new formula, which was widely recognised as tasting awful. Consumer backlash led to a swift return to the original recipe, highlighting the importance of product quality over branding – even when you have Coca-Cola’s budget.
How to avoid it: Always prioritise product quality. Invest in quality ingredients, rigorous quality control, and customer feedback. Ensure your product delivers on its promises and consistently meets or exceeds expectations.
Weak branding and marketing
On the flip side of the quality equation, we have brands that fall victim to weak branding and marketing efforts. While a great product is essential, it won’t succeed without effective branding and marketing. That’s where we come in!
How to avoid it: Invest in your brand. Develop a compelling brand story and a unique selling proposition that speaks to your target audience. Create a logo and identity that distinguishes your brand from others and reflects your USP.
Poor distribution and accessibility
Even the best products can fail if they’re not readily available to their customers. Limited distribution channels or lack of accessibility can bring a food brand to its knees.
How to avoid it: Ensure that your product is available through a wide range of distribution channels. Find out where your customers expect to find your product and conduct market analysis to identify the most suitable distribution channels for your wares.
Ignoring customer feedback
Customer feedback is a freely available goldmine of information that can help you improve and grow your food brand. Failing to listen to your customers and adapt your product accordingly is a common mistake, even for seasoned professionals. A famous example is the decline of the fast-food chain McDonald’s in the early 2000s. Ignoring customer feedback led to a drop in quality and consumer satisfaction.
How to Avoid It: Establish a feedback loop with your customers. Encourage them to provide input and reviews and take their suggestions seriously. Use this feedback to continuously improve your products and meet changing customer expectations.
The food industry is highly competitive, and the recipe for success is not always straightforward. Food brands can fail for various reasons, from ignoring market trends to poor product quality and pricing mistakes. By learning from these common pitfalls and taking the steps outlined above, you can increase your chances of avoiding these traps and achieving long-term success in the food industry.
If you feel that you could use a further helping hand, talk to Toast.